Oroton International Strategy

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OROTON
International Marketing Report
Student: Erin Burgess Student: Kellie Burmeister Student: Mark Bell Lecturer: Suzanna Mahinder Due date: 25th August 2013
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TABLE OF CONTENTS
INTRODUCTION ................................................................................................. 3 THE OROTON BRAND ....................................................................................... 3 OROTON PRODUCTS........................................................................................ 3 THE CHINESE MARKET .................................................................................... 4 OBJECTIVES ......................................................................................................…show more content…OBJECTIVES
The objectives of the marketing plan is to create a presence of the brand Oroton in the Chinese market and to obtain life time value consumers. The plan will increase visibility and memorability of the Australian brand in China and to also increase the customer satisfaction for existing international customers; both online and travelers. The history and richness of the product will be endorsed to sustain the foundation of the existing Australian success story, with a Chinese edge. Below are the 5 objectives for this marketing plan:
1. Increase visibility and memorability of the Australian brand through mass marketing, direct
marketing and customarily social media, building a large online presence in China.
2. Increase customer satisfaction for existing international customers but offering more customised
ranges suited to the Chinese market.
3. Sustain the foundation of the existing Australian success story and the luxury brand. 4. Enter the Chinese market using a mixture of International Joint Venture (IJV) and Wholly
Foreign Owed Enterprises (WFOE).
5. Distribution focus on physical distribution, including inventory control, warehousing and
transportation of goods to customers and online shipping.
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TARGET MARKET
The consumption of luxury goods in China is mounting sharply. Not only those born to elite families, but also many common people are greedy for luxury brands (China, a Booming

Executive Summary
Oroton is an Australian owned company making luxury goods, from bags to clothing. This study first goes through a resource and capabilities analysis for the Oroton Company. We follow this with an external environment analysis and fashion industry analysis in Oroton’s host market, namely, China. In addition, this study is an analysis on their plan to enter the China luxury goods industry, through setup of a Wholly Owned Subsidiary with a view to using a “Focus” and “Differentiation”

Business Management and Change- Oroton
OrotonGroup is an importer and retailer of clothing and leather goods and accessories. The business was originally established by Boyd Lane and Australian entrepreneur in 1936. The organisational structure has developed from a simple sole trader in 1936 to a private company called Boyd Lane & Co. Pty Ltd in 1939 and then a public company in 1987 called Oroton International and in 2002 the company was renamed OrotonGroup.
Management Theories
Classical Scientific:

an increase, Profit Margins are all decreased over the two years.The ratios for Oroton in both years is 20.5 cents and 22.2 cents respectively.The slightly drop is owing to the increasing cost of sales and operating expense. However, Oroton performed well under the difficult trading condition .Compared with Oroton,Country Road has a quite large sales reached up to 419812 million dollars due to the company strategy which was developing the new market and closed unprofitable stores but the profit

substantially all such risks and benefits. |
Accounting flexibility and specific strategy
Accounting Items | Flexibility | Specific Accounting Strategy |
Revenue recognition | Medium to High * Management can alter the point of revenue recognition to manipulate the performance of the company especially with license fees, franchise fees, and commissions. | * No indication of specific accounting strategy for revenue recognition since the increase in revenue from 2010 to 2011 is consistent

publicly-listed company with over 60 stores across Australia, New Zealand and Asian. The Group operates in retailing and wholesaling of leather goods, fashion apparel under its own brand and licensing brand. At present, ORL manages three brands include Oroton, Brooks Brothers and GAP. The range of products of ORL are across handbags, satchels and wallets, small leather accessories, jewelry, ties, umbrellas, knitwear, lingerie, men’s underwear and shoes (OrotonGroup Limited, 2014)
The competitor company

corporate
rebranding is articulated. That theory is extended by the development of six principles and by case
research. The principles are illustrated in the case of a Canadian leather goods retailer which has
implemented a major corporate rebranding strategy. The paper demonstrates the value of
organisational single case studies as a precursor to further research.
Findings – The single case enables a more in-depth analysis of how branding principles were applied
to corporate rebranding. All six principles